In Dubai, real estate transactions reach records

After years of crisis, it seems that Dubai, in the United Arab Emirates, sees its real estate sector revived. The large influx of Russian nationals who have fled the Western sanctions that have hit their country since the start of the war in Ukraine boosted real estate transactions, says the City of Dubai. Russians have been buying up property in some of the territory’s most desirable neighborhoods. They are also the biggest international buyers of real estate projects in Dubai in 2022, indicates the Bloomberg agency, which cited Betterhomes, a leading real estate broker based in the emirate. The British, Italians and Indians are also part of the ranking of the biggest buyers.

Standing at more than 132 billion euros in 2022, the transactions are even qualified as “records“. This is the first time they have crossed this rate, the Dubai government’s communication service said on January 17, 2023. This is an increase of 76.5% compared to the previous year. In total, 99,881 real estate transactions were recorded last year.Apartment sales have been booming, their volumes jumping 73% in one year, adds Betterhomes.

An increase in real estate prices expected in 2023

This is good news for the economy of this Gulf emirate, since a third of its value is based on the real estate sector. The city has experienced a few crises in recent years, such as the 2009 economic crisis and the Covid-19 pandemic. The financial crash had in particular caused prices to fall sharply. Since then, the market had picked up in 2021, propelled in particular by an easing of visa applications. L’World Exhibition 2020 and its project to transform its existing building stock have also boosted the image of the emirate.

For Sultan Butti ben Mejren, head of the Dubai Land Authority, these recent transactions prove the capacity of “real estate sector to maintain its rapid growth and strengthen its attractiveness“. Despite higher interest rates, the year 2023 should be marked by a slow increase in residential property prices, of the order of 5%, reports for its part Reuters, which is based on the information from Betterhomes Prices had already increased by 11% in 2022.

Dubai is known for its skyscrapers made up of offices and hotels, its artificial islands and its gigantic shopping malls. The emirate allowed in 2002 foreigners to access the property, thus attracting a large number of international investors. Formerly a fishing village, the city has become a territory of concrete and steel, which eats away at the surrounding desert a little more each year.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *